Be the first to like this
Introduction: Current General Situation in Ferrous Metallurgy of Ukraine: Problems and OutlookIn the Ukraine, rather large capacities on output of steel and rolled steel are available. The country the 8th greatest producer of steel and 7th of iron in the world (in 2008). The country exports up to 80% of production volume of its ferrous metallurgy, including the whole range of the sector products: iron ore, iron, ferroalloys, billet, slabs, skelp for pipes, rebar, wire rod, sections, HR and CR flat steel in coils and sheets, pipes, metalware products, coated steel, etc.Share of Ukraine in ferrous metallurgy production of the CIS is very high: Ukraine yields 37% of total CIS iron, 34% of CIS steel and 27% of CIS rolled steel. Ferrous metallurgy is basic sector of Ukrainian economy. It includes around 200 enterprises, including 12 mining and concentrating enterprises, 14 metallurgical integrated Works and plants, 12 pipe plants, 13 metalware plants, 11 coal-tar chemical plants, 10 refractory plants, ferroalloys plants, 112 secondary ferrous metals enterprises (on processing scrap and wastes), as well as machine building, repair and engineering enterprises.Notice that, in the Ukraine, a share of ferrous metallurgy in industrial output of the country is the greatest among countries of the former USSR, around 25%; the sector gains up to 40% of the country export receipts in hard currency and 7-8% of GDP.Current standing of Ukrainian ferrous metallurgy is characterised by imperfect structure and lag in technology from developed countries and even Russia. For instance, in Ukraine, above 36% of steel is produced by open-hearth rout, and only around 40% are continuously cast (2008). Range and shares of products of Ukrainian ferrous metallurgy are inconsistent with world market demand. This Ukrainian sector requires radical modernisation and reconstruction, as well as optimising structure of range of final products. Productive assets are worn and obsolete: by the end of 2008, depreciation of facilities operating exceeded 60% (including 54% depreciation of cokeoven batteries, 80% of available blast furnaces, 90% of open hearth furnaces and rolling mills; 26% depreciation of converters), and the completely depreciated facilities yield above a half of the country steel products.The situation is aggravated by the fact that most of the sector enterprises are socalled city-forming (i.e. are the sole job sources in a district). Thus, closing obsolete capacities results in arising serious social tension owing to growth of unemployment. These problems were especially sharpened since September 2008 in the period of the global and local financial-economic crisis.Ukrainian government attempted to improve the situation in the sector by giving various preferences, tax credits to metallurgical companies, decreasing duties and tariffs for them. For instance, from mid-1999 to the end of 2001, a large-scale experiment was conducted in Ukrainian metallurgy: giving considerable tax and other privileges to the sector enterprises to overcome crisis in the sector. The experiment allowed to restore partially working capital of the enterprises and to begin their modernization.